Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved from the prior quarter but was lower than the same quarter last year. Capital expenditure decreased sequentially yet remained elevated, resulting in a narrower free cash flow deficit compared to both prior periods.
- Revenue declined slightly sequentially and more notably year-over-year. Operating cash flow was positive but insufficient to cover capital expenditure, producing a negative free cash flow margin that improved from the preceding quarter but worsened relative to the year-ago quarter.
- Compared to the prior quarter, operating cash flow increased while capital expenditure decreased, narrowing the free cash flow deficit. Relative to the same quarter last year, both operating cash flow and free cash flow were lower, though capital expenditure was also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$760.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$68.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$451.3M
Cash generated by operations before capital spending.
CapEx
$519.6M
Capital spending and related asset purchases.
FCF margin
-1.7%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2023-06-30 | $4.4B | $749.2M | $934.5M | -$185.4M | -4.3% |
| 2023-09-30 | $4.1B | $482.4M | $832.9M | -$350.5M | -8.5% |
| 2023-12-31 | $4.2B | $411.1M | $567.2M | -$156.1M | -3.7% |
| 2024-03-31 | $4.0B | $451.3M | $519.6M | -$68.4M | -1.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 63.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 12.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$337.3M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Narrower Cash Deficit
The free cash flow deficit improved from the prior quarter and the year-ago quarter, driven by a sequential increase in operating cash flow and a reduction in capital expenditure.
The company consumed less cash from operations after capex this quarter than in either comparison period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue declined slightly sequentially and more notably year-over-year. Operating cash flow was positive but insufficient to cover capital expenditure, producing a negative free cash flow margin that improved from the preceding quarter but worsened relative to the year-ago quarter.
Compared to the prior quarter, operating cash flow increased while capital expenditure decreased, narrowing the free cash flow deficit. Relative to the same quarter last year, both operating cash flow and free cash flow were lower, though capital expenditure was also lower.
Monitor the trajectory of capital expenditure relative to operating cash flow, as the current quarter still shows a shortfall.